Weighted average cost of capital for this firm

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Reference no: EM132050737

The current stock price for a company is $43 per share, and there are 7 million shares outstanding. The beta for this firms stock is 1, the risk-free rate is 4.6, and the expected market risk premium is 6.2%. This firm also has 50,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 8%, 11 years to maturity, a face value of $1,000, and a current price of 1,026.83. If the corporate tax rate is 38%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign).

Reference no: EM132050737

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